GOVERNMENT OF INDIA OUTCOME BUDGET OF MINISTRY OF FOOD PROCESSING INDUSTRIES 2015-16 OUTCOME BUDGET 2015-16 Ministry of Food Processing Industries Demand No. – 47 Contents Page No. Executive Summary 1-3 Chapter –I Introduction 4-5 Chapter –II Financial Outlays and Outcome Budget 2015-16 6-9 Chapter – III Reform Measures and Policy Initiatives 10-13 Chapter – IV Review of Performance 14-22 Chapter – V Financial Review during 2012-13, 2013-14, 2014-15 23-26 Chapter – VI Review of Performance of Statutory and Autonomous Bodies 27-33 Abbreviations 34 Outcome Budget 2015-16 Demand No. – 47 Ministry of Food Processing Industries Executive Summary The Outcome Budget is an attempt to reflect the physical dimensions of the financial budgets by fixing targets and quantifying deliverables. The Outcome Budget 2015-16 of the Ministry of Food Processing Industries under various Chapters discusses the Ministry‟s mandate and key activities, the Statement of „outlays‟ and projected „outcomes‟ for the financial year 2015-16 in respect of the six Plan Schemes implemented by the Ministry of Food Processing Industries, as also their past performance. The fiscal incentives and policy initiatives taken from time to time, to promote investment in the food processing sector such as, relief provided under the Income Tax, Customs Duty, Excise Duty etc. are also described. Steps taken for bringing about simplification, transparency and e-governance/use of technology for fast tracking implementation, and monitoring the projects/implementation of schemes under the Ministry are also detailed. The Document also contains a financial review of the Schemes implemented by the Ministry, over the last three years. The total budgetary allocation for the Ministry of Food Processing Industries under BE 2015-16 is Rs. 505.51 crore, out of which Rs. 487.00 crore is for Plan expenditure and Rs. 18.51 crore for Non-Plan. Under the 12th Five Year Plan, the following major Plan Schemes are being implemented by the Ministry: Scheme for Infrastructure Development - comprising of three components i.e. i) Mega Food Parks (MFP) The scheme provides state of the art infrastructure facility to enable setting up of food processing units. It follows a cluster based approach and ensures back ward and forward linkages. The Government has sanctioned the setting up of 42 Mega Food Parks during the 11th and 12th Five Year Plan in four phases. Out of 21 projects accorded final approval, 4 projects are operational and 2 more projects are likely to be completed by 2014-15. Another 2 projects are likely to be completed by 2015-16. Each MFP is expected to benefit 6000 farmers/producers directly and 25,000-30,000 farmers indirectly. An amount of Rs. 458.08 crore has been released under the scheme up to 31.12.2014. ii) Cold Chain, Value Addition and Preservation Infrastructure The scheme provides assistance for developing integrated and complete cold chain and preservation infrastructure facilities from the farm gate to the consumer. Out of 112 projects approved, 50 have been completed and 62 are under implementation. Nine projects have been cancelled /withdrawn due to slow progress/non-implementation by the promoter. These 112 projects are expected to create a capacity of 376544 MT of CA/MA//normal cold storage / frozen 1 stores, 609 nos. of refrigerated carriers, 94.05 MT per hours of IQF capacity and 106.97 LLPD of milk processing/storage. A cumulative amount of Rs. 478.42 crore has been released under the scheme till 31/12/2014. Out of this, Rs. 146.13 crore has been released during 2014-15, till 31.12.2014. iii) Setting up/ Modernization of Abattoirs The main objective of the Scheme is to assist in setting up of modern municipal abattoirs so as to provide scientific and hygienic slaughtering of animals, waste management and pollution control, chilling facility etc. so as to ensure supply of safe and hygienic meat to consumers. Out of 39 abattoir projects during 11th Plan and 12th Plan, 4 projects have been completed as on 31.12.2014. 35 projects are under implementation with 1 more project likely to be completed during 2014-15. An amount of Rs. 80.27 crore has been disbursed under this scheme up- to 31.12.2014. Total BE 2015-16 allocation for the Scheme for Infrastructure Development is Rs. 329.00 crore which includes a provision of Rs. 41.70 crore for North East Region including Sikkim. Scheme for Technology Up-gradation/Establishment/Modernization of Food Processing Industries (11th Plan committed liabilities) - The objective of the Scheme is the creation of new and up - gradation of existing processing capacity in various sectors eg. milk, fruit & vegetables, meat, poultry, fishery, wine, bakery products and grain milling including cereals, oil seeds, rice milling, flour & pulses. The Scheme has been subsumed in the Centrally Sponsored Scheme – National Mission on Food Processing (NMFP) w.e.f 01.04.2012. Cases received up-to 31.03.2012 are being considered by the Ministry. Under this Scheme, Rs. 186.19 crore has been released to 1232 units during 2012-13, Rs. 162.08 crore released to 996 units during 201314. During 2014-15 (up to 31.12.2014) Rs. 142.63 crore released to 881 units. A provision of Rs. 100.00 crore has been kept for the Scheme under BE 2015-16. Scheme for Quality Assurance, R&D and Promotional activities. Under this scheme assistance is provided for (i) Setting up/ upgradation of Food Testing Laboratories, (ii) Adoption of Food Safety and Quality Assurance Systems such as ISO 9000/ISO 22000/Hazard Analysis and Critical Control Points (HACCP), Good Manufacturing Practices (GMP) and Good Hygienic Practices (GHP), and (iii) Grant-in-aid for Research & Development for product and process development, improved packaging, value addition etc. to benefit food processing industries. During 2014-15 (up to 31.12.2014), an amount of Rs. 28.56 crore was released under the Scheme. The allocation for the scheme in BE 2015-16 is Rs. 30.00 crore. During the year 2014-15, 8 number of Food Testing Laboratory (FTL), 20 number of R&D projects were completed and 4 units were reimbursed expenditure on HACCP/ISO certification. The implementation of the Food Testing Laboratory (FTL) and the R&D components of the Scheme have been entrusted to the Indian Council of Agricultural Research (ICAR) under the Department of Agricultural Research and Education (DARE), Ministry of Agriculture and Science and Engineering Research Board (SERB) under the Ministry of Science & Technology, respectively. Proposals received up-to 31.03.2012 are being dealt with by the Ministry. 2 Scheme for Human Resource & Skill Development (11th Plan committed liabilities in respect of HRD scheme)- The Scheme provides financial assistance by way of grants for establishing Food Processing Training Centres (FPTC), creation of Infrastructure for running Degree/Diploma courses in Food Processing by educational Institutions/Universities and to conduct Entrepreneurship Development Programmes (EDPs). During the year 2014-15 (up to 31.12.2014), an amount of Rs. 2.27 crore was released under the Scheme towards creation of Infrastructure facilities in 3 universities, setting up of 1FPTC and organizing 10 EDPs. A provision of Rs 5.00 crore has been kept for the Scheme under BE 2015-16. Strengthening of Institutions and Administration – Under this Scheme Grants are provided for the National Institute of Food Technology, Entrepreneurship & Management (NIFTEM) at Kundli, Haryana; the Indian Institute of Crop Processing Technology (IICPT) Thanjavur, Tamil Nadu; Indian Grape Processing Board, Pune, Maharashtra; and National Meat and Poultry Processing Board, New Delhi. The expenditure incurred under the Scheme during 2014-15 (up to 31.12.2014) amounted to Rs. 37.90 crore. The activities and performance of these autonomous bodies is reviewed at Chapter VI of the Outcome Budget. National Mission on Food Processing (NMFP) - This Scheme was approved for implementation as a Centrally Sponsored Scheme during the 12th Plan with an allocation of Rs. 1250 crore. Rs. 29.72 crore and Rs. 108.00 crore were released to various states during 2013-14 and 2014-15 (up to 31.12.2014) respectively. The scheme has been delinked from Central Assistance w.e.f. FY 2015-16 and no budgetary support has been provided for the State Plan for BE 2015-16. However, a provision of Rs. 7.00 crore is provided for UT Plan under BE 2015-16. A Special Fund of Rs. 2000 crore has been set up in NABARD to provide credit at affordable rates to boost food processing sector. Under this fund, loan is extended to individual entrepreneurs, cooperatives, farmers producers organizations, corporates joint venture, SPV and entities promoted by the Government for setting up, modernization, expansion of food processing units and development of infrastructure in designated food parks. The details of the scheme can be viewed at NABARD website https://www.nabard.org/foodprocessing.pdf Regular reviews are held to see that there is no major slippage in the physical and financial targets. Periodic meetings are held with the State Nodal Agencies to review the progress of projects. All information from the stage of receipt of applications to the stage of disbursal of grants-in-aid are computerised to enable regular monitoring of expenditure details as well as status of processing of various applications for grants-in-aid / assistance from the Ministry under various Plan Schemes. Status of processing of applications is also made available on the website of the Ministry. ……………………. 3 CHAPTER – I INTRODUCTION Food processing involves any type of value addition to agricultural or horticultural produce and also includes processes such as grading, sorting, packaging etc. which enhances shelf life of the produce. The Ministry provides vital linkages and synergies between industry and agriculture. Ministry of Food Processing Industries (MFPI) was set up in July 1988 to provide an impetus to development of food processing in the country, Subsequently vide Notification No. Doc. CD-442/99 dated 15.10.99 this Ministry was made a Department and brought under the Ministry of Agriculture. It was again notified as Ministry of Food Processing Industries in September, 2001. (i) (a) (b) (c) (d) (e) (f) The subjects allocated to the Ministry are as under:Industries relating to :Processing and Refrigeration of certain agricultural products like milk powder, infant milk food, malted milk food, condensed milk, ghee and other dairy products, poultry and eggs, meat and meat products. Processing of fish (including canning and freezing) Establishment and servicing of development council for fish processing industries Technical assistance and advice to fish processing industry Fruit and vegetable processing industry (including freezing and dehydration) and Food grains milling industry (ii) Planning, development and control of, and assistance to, industries relating to bread, oil seeds, meals (edible), breakfast foods, biscuits, confectionery (including cocoa processing and chocolate making), malt extract, protein isolate, high protein food, weaning food and extruded food products (including other ready to eat foods) (iii)Specialized packaging for food processing industry (iv) Beer including non-alcoholic beer (v) Alcoholic drinks from non-molasses base (vi) Aerated water and soft drinks The Ministry of Food Processing Industries is concerned with formulation and implementation of policies and plans for the food processing industries within the overall national priorities and objectives. A strong and dynamic food processing sector plays a vital role in diversification and commercialization of agriculture, enhancing shelf life, ensures value addition to agricultural produce, generates employment, enhances income of farmers and creates markets for export of agro foods. The Ministry acts as a catalyst for bringing in greater investment into this sector, guiding and helping the industry and creating a conducive environment for healthy growth of the food processing industry. The Ministry aims at: Better utilization and value addition of agricultural produce 4 Minimizing wastage at all stages in the food processing chain by development of infrastructure for storage, transportation and processing of agro produce. Induction of modern technology into the food processing industries Encouraging R&D in food processing for products and process development. Providing policy support, promotional initiative and facilities to promote value added exports. Create critical infrastructure to fill the gaps in the supply chain from farm to consumer. The functions of the Ministry can be broadly classified under policy support, development initiative and promotional activities. In order to meet its objectives the Ministry of Food Processing Industries (MoFPI) has been supporting the following range of initiatives/schemes for the growth of food processing industry: Policy Support (a) Formulation and implementation of policies for the food processing sector (b) Facilitating creation of a conducive environment for healthy growth of the food processing sector. (c) Promoting rationalization of tariff and duties relating to food processing sector. Developmental initiatives (a) Providing assistance for creation of modern infrastructure, widening the R&D base, development of human resources to meet the growing requirement of managers, entrepreneurs and skilled workers in the food processing sector etc. (b) A Centrally Sponsored Scheme (CSS) National Mission on Food Processing (NMFP) was launched during 12th Plan (2012-13) for decentralization of implementation of Ministry‟s schemes, through State/ UT Governments. (c) Assistance for setting up of analytical and testing laboratories, active participation in the laying down of food standards and their harmonization with international standards. (d) Sevottam, charter mark in service delivery for excellence has been introduced in the Ministry. (e) Regular interaction with industries and UT/State Governments for activating Single Window System. (f) Special fund of Rs. 2000 crore set up by the Reserve Bank of India in National Bank for Agriculture and Rural Development (NABARD), the nodal agency, to provide affordable credit in designated Food Parks. (g) Foreign Direct Investment is one of the priority areas for attention under „Make in India‟ campaign. In this context an email ID – [email protected] has been created to interact with investors. Promotional Initiatives - In order to create awareness about the potential and prospects of food processing, assistance is provided for: (a) Organizing Workshops, Seminars, Exhibitions and Fairs; (b) Studies/Surveys etc. ……………………. 5 Chapter- II FINANCIAL OUTLAYS AND OUTCOME BUDGET 2015-16 The existing five Central Sector Plan schemes of Ministry of Food Processing Industries have come under the umbrella of National Mission on Food Processing (NMFP), a Central Sector Scheme w.e.f. FY 2015-16. A Statement of Outlays and Outcomes for the five Plan Schemes, implemented by the Ministry for the financial year 2015-16 are detailed below:S. No. Name of Scheme/ Programme (Plan) Objective/ Outcome 1 2 Central Sector Scheme National Mission on Food Processing Scheme for Infrastructure Development comprising of 3 1. Outlay 2015-16 (Rs. in crore) 4 (i) NonPlan Assist in creation of infrastructure for FPI Sector Quantifiable Deliverables/ Physical outputs 5 Projected Outcomes Processes/ Timelines Remarks/ factors Risk 6 7 8 Expression of Interest (EoI) was invited to fill up the vacancies /future vacancies due to withdrawal/ cancellation and upscaling. The proposals received are being evaluated for according inprinciple approval. Scheme of integrated cold chain, value addition and preservation infrastructure for non horticulture products has been merged as one of the components of new centrally (ii) Plan 329.00 (41.70 for NER) (i) Mega Food Parks - MFP-40 This will address the issues of small farm size and small and medium nature of processing industries through a cluster approach with stakeholders managing the supply chain. Generally 30 months from date of release of first instalment. However, Implementation depends upon land availability, finance and other logistic support. (ii) Cold Chain, Value Addition and Preservation Infrastructure - Cold chain -112 This will enable linking groups of producers to the processors and market through well-equipped supply chain and cold chain infrastructure. Private investment of around Rs. 1734.06 crore shall be attracted as against the proposed grant of Rs. 873.54 crore. About 24-30 months from the date of issue of the approval letter for financial support. 6 (iii) Setting Modernization Abattoirs up/ of Of 6 on-going projects of 11th Plan, 2 are likely to be completed and progress expedited in others. Out of 29 approved projects in 12th Plan, all the projects are under various stages of implementation. This will enable scientific and hygienic slaughtering of animals and application of modern technology for slaughter waste management and pollution control. Also better hygiene, safety and retail cold chain Management will be promoted so that the consumers get safe and hygienic meat. Implementation depends upon land availability, finance and other logistic support. The implementation period as per scheme guidelines is about 24 months from the date of approval/final approval of project unless extended by the Approval Committee. 2. Scheme for Technology Upgradation, Establishment, Modernization of Food Processing Industries Assist upgrdation/ establishment/mod ernization of FPI units - 100.00 (3.00 for NER) About 400 food processing units will be assisted. Scheme for Technology Upgradation, Establishment/Modernizati on of Food Processing Industries Assist upgrdation/ establishment/moderni zation of FPI units 3. Scheme for Quality Assurance, Research & Development & Promotional Activities. The Scheme aims at development of food testing laboratory infrastructure, facilitating research & development in processed food sector and motivating the food processing - 30.00 (3.00 NER) R&D projects -22 FTL –11 HACCP-7 Product and process development, improved packaging and value addition leading to innovative products and processes with commercial value. Creation and upgradation of food testing infrastructure and adoption of food safety and quality assurance mechanisms to enhance product safety and R&D & FTL projects are approved following the due procedure of scrutiny by Technical Scrutiny Committee (TSC) and approved by competent authority / Project Approval Committee (PAC). R&D projects are approved for a period of three years. The for 7 sponsored scheme – National Mission on Food Processing (NMFP). The scheme was being implemented as Central Sector Scheme for the first two years of the 12th Five Year Plan i.e. 2012-13 and 2013-14. Thereafter with effect from 1-42014 the scheme is being implemented through National Mission on Food Processing (NMFP) by the State Governments for the rest of the 12th Five Year Plan period. - The approval of R&D projects is contingent upon receipt of viable projects from Universities / R&D institutes/ State Govts./ R&D labs in private sector etc. The scheme is being implemented through Science & industry for adoption of food safety and quality assurance mechanisms such as Total Quality Management (TQM) including ISO 9000, ISO 22000, HACCP, GMP, GHP. 4. 5. Scheme for Human Resource & Skill Development (Committed liabilities of 11th Plan in respect of HRD Scheme) To augment the supply of trained manpower/person nel at all levels in the food processing sector. - Scheme for Strengthening Institutions Administration To provide budgetary support to the Institutions of the Ministry. 4.04 of and 5.00 (0.30 NER) for 3Degree/Diploma, 30 – EDPs and 5 – FPTCs will be assisted for committed liabilities proposals. 16.00 thereby protect consumer health and acceptability of products. implementation schedule for FTL projects is about two years. The quality assurance programmes like ISO 9000, ISO 22000, HACCP, GMP, GHP are approved following due procedure of PAC approval and grant is released as reimbursement of expenditure after obtaining the necessary certificate within one year of issuance of approval letter. Enabling entrepreneurs to set up businesses relating to food processing. Availability of food technology courses for creating trained as well as skilled manpower to Food Processing Industry. 6 months after Project Scrutiny Committee recommends the proposal. Engineering Research Board (SERB) under Department of Science & Technology (DST) w.e.f. 01.04.2012. The scheme of Food Testing Laboratory is being implemented through Indian Council of Agricultural Research (ICAR) under the Department of Agricultural Research and Education (DARE) w.e.f. 01.04.2012. IICPT is an institution affiliated to Tamil Nadu Agricultural University (TNAU, Coimbatore) offering B.Tech./ M.Tech./ Ph.D. academic.program mes. NIFTEM is a deemed to be University offering professional 8 courses in food technology. Being autonomous institutions, details of outputs/outcomes/ timelines are given in Chapter VI of the Outcome Budget. Grand Total 4.04 480.00 (48.00 for NER) ……………………. 9 CHAPTER – III REFORM MEASURES AND POLICY INITIATIVES A number of fiscal incentives1 are provided by Government of India for promoting investment in food processing sector. The major incentives are as under:1. Income Tax Deduction in expenditure: Under Section 35-AD of the Income Tax Act 1961, deduction for expenditure incurred on investment is allowed if this investment is wholly and exclusively for the purpose of any specified business (Details given below). However, this deduction is allowed only for the investment made in the previous year and prior to commencement of its operations. Businesses allowed 150% deduction (provided the taxpayer has commenced its business on or after 01.04.2012) (a) Setting up and operating a cold chain facility (b) Setting up and operating warehousing facility for storage of agricultural produce; Business allowed 100% deduction (c) Bee-keeping and production of honey and beeswax (d) Setting up and operating a warehousing facility for storage of sugar Deduction of Tax from profit: Under Section 80 IB(11A) of the Income Tax Act, 1961, new units (ie not formed by splitting up or by way of reconstruction of an existing business) in the business of processing, preservations and packaging of fruits or vegetables, meat & meat product, poultry, marine or dairy products are permitted to claim deduction from Income tax. 1 Fiscal Incentives indicated are illustrative. Details regarding the incentives and their duty implications can be ascertained from the relevant Act and Notifications issued by the Department of Revenue, Ministry of Finance. 10 This tax incentive is available as 100% tax exemption for the first 5 years‟ of operation, and after that, at the rate of 25% of the profits being exempted from tax; 30% in case of a company. This benefit is available only for ten years provided that such business had commenced on or after 1.04.2001. If any business relating to meat, meat products, poultry, marine products or dairy products has started after 1.4.2009, the above benefits would be available, but not to the units operating in such business before 01.04.2009. 2. (i) (ii) (iii) Service Tax Negative List: Under Finance Act, 1994, Service Tax is not leviable on items contained in the Negative List. These services are as follow:Services including processes carried out at an agricultural farm including tending, pruning, cutting, harvesting, drying, cleaning, trimming, sun drying, fumigating, curing, sorting, grading, cooling or bulk packaging and such like operations which do not alter the essential characteristics of agricultural produce but make it only marketable for the primary market. (Ref. Section 66 D(d) (iii) Chapter V of the Finance Act, 1994) Exempted category: Ministry of Finance vide notification dated 20-6-2012 has given exemption of Service Tax for following services:(a) Construction, Erection, Commissioning or installation of original works pertaining to post-harvest storage infrastructure for agricultural produce including Cold storages for such purposes. (b) Mechanized Food grain handling system, machinery or equipment for units processing agricultural produce as food stuff excluding alcoholic beverages; and (c) Services provided by a goods transport agency by way of transportation of fruits, vegetables, eggs, milk, food grains or pulses in a goods carriage. (d) Services of Loading, unloading, packing, storage or warehousing of agricultural produce. (Ref. Service Tax notification No. 25/2012-Service Tax dated 20th June 2012 issued under Section 93 Chapter V of the Finance Act, 1994- Power to grant exemption from service tax.. In the Budget 2015-16, services of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labeling of fruits and vegetables have been exempted from service tax. This will encourage aggregators and cold chain operators to integrate with the supply chain in fruits and vegetables segment. 3. Customs Duty (i) Government has extended Project Imports‟ benefits to the following projects: (a) Projects for the installation of mechanized food grain handling systems and pallet racking systems in „Mandis‟ and Warehouses for food grains and sugar; (b) Cold storage, cold room (including for farm level pre-cooling) or industrial projects for preservation, storage or processing of agricultural, apiary, horticultural, dairy, poultry, aquatic and marine produce and meat. Consequently, all goods related to Food Processing, imported as part of the project, irrespective of their tariff classification, would be entitled to uniform assessment at concessional basic customs duty. (Ref. Notification No 12/2012 dated 17.3.2012) 11 (ii) (iii) Customs duty on Hazelnuts has been reduced from 30% to 10%. (Ref. Notification No 12/2013-Customs dated 1.3.2013) Customs Duty on De-hulled Oat grains has been reduced from 30% to 15%. (Ref. Notification No 12/2013-Customs dated 1.3.2013) 4. Central Excise Duty In order to promote food processing industry, the Government has given concessions in Central Excise Duty from time to time. Duty structure of some of the processed food items are as under:(i) Nil Duty in Milk, Milk Products (Chapter 4), Vegetables (Chapter 7), Nuts and Fruits, fresh & Dried (Chapter 8). (ii) As against standard excise rate of 12%, Processed Fruits & Vegetables (Chapter 20) carries a merit rate of 2% without CENVAT or 6% with CENVAT. (iii) Soya Milk Drinks, Flavoured Milk of Animal origin also carries a duty of 2% without CENVAT or 6% with CENVAT. Food Processing Machineries: (i) All refrigeration machineries and parts used for installation of cold storage, cold room or refrigerated vehicle, for the preservation, storage, transport or processing of agricultural, apiary, horticultural, dairy, poultry, aquatic and marine produce and meat are exempted from Excise Duty. (ii) Pasteurising, drying, evaporating, etc. machinery used in Dairy sector is exempted from Excise Duty. [Notification No 12/2012-Central Excise dated 17.3.2012] (iii) Excise duty on machinery for the preparation of meat, poultry, fruits, nuts or vegetables and on presses, crushers and similar machinery used in the manufacture of wine, cider, fruit juices or similar beverages and on packing machinery is being reduced from 10% to 6%.( Notification No. 12/2014- Excise dated 11.07.2014). Simplification/Transparency & E-Governance: Check points/check lists have been prescribed for expediting approval of FPI projects. Time frame for clearing of projects prescribed. Standard format for examining projects. Frequency of approval committee meetings increased. Guidelines prescribed, publicized and circulated to States. Regular meetings organized with stakeholders. Database on proposals in Ministry operationalized. Management Information System for NMFP sanctioned projects by States across the country has been operationalized. Intra FPI developed for fast effective management of content and a common information platform. Video conferencing with States/firms introduced. Foreign Direct Investment is one of the priority areas for attention under „Make in India‟ campaign. In this context an email ID – [email protected] has been created to interact with investors. 12 Sevottam, charter mark in service delivery for excellence has been introduced in the Ministry. A Special Fund of Rs. 2000 crore has been set up in NABARD to provide credit at affordable rates to boost food processing sector. Under this fund, loan is extended to individual entrepreneurs, cooperatives, farmers producers organizations, corporates joint venture, SPV and entities promoted by the Government for setting up, modernization, expansion of food processing units and development of infrastructure in designated food parks. The rate of interest charged is linked to Prime Lending Rate (PLR) to NABARD and the risk rating undertaken by NABARD for the borrowing entity. The details of the scheme can be viewed at NABARD website https://www.nabard.org/foodprocessing.pdf. Food processing sector has been identified as one of the priority sector under “MAKE IN INDIA” an initiative of Hon‟ble Prime Minister of India. With a view to attract investment to this sector, Ministry of Food Processing Industry has been investing in infrastructure for promoting food processing industries. Mega Food Parks with common utility like road, electricity, water supply, sewage facility and common processing facility like pulping, packaging, cold storage, dry storage and logistics are being promoted in areas with strong agricultural resource base. These parks provide fully developed plots and factory sheds to entrepreneurs on long term lease basis where they can set up food processing units in “plug & play model”. Government has also declared investment in Food Parks covered under the Harmonized List of Infrastructure Sub-sectors (HLIS)” vide Government of India Notification dated 13th October 2014. Following this notification, it is expected that Mega Food Parks assisted by the Ministry will be able to access to infrastructure lending on easier terms. In India, we have a huge cold chain gap of 29 Million MT. With a view to encourage investment in cold chain logistics, income tax benefits are extended for attracting private investment to the sector. In the context of “MAKE IN INDIA” campaign, the Ministry has been disseminating information to potential investors to attract investment to the sector through a dedicated “Investors Portal” in which a range of information like resource base, availability of land, state specific policies, fiscal incentives are shared with the potential investors. With a view to finalise a concrete action plan, the Department of Industrial Policy & Promotion (DIPP) had organized „Make in India‟ workshop at Vigyan Bhawan. The Department, on the basis of deliberations and presentations before Hon‟ble Prime Minister in the workshop, has compiled a document “Make in India : An Action Plan” for necessary follow-up action and implementation by all concerned. Two important medium term initiatives outlined in the document relate to creation of additional 7.5 Million MT cold chain capacity under the joint responsibility of the Ministry of Agriculture & the Ministry of Food Processing Industries and setting up of 42 Mega Food Parks in the next 3 years. ------------------------ 13 CHAPTER IV REVIEW OF PERFORMANCE Sl. No. Name of Schemes / Programmes SCHEME WISE PHYSICAL PERFORMANCE - 2014-15 (up to 31.12.2014) Physical Performance Physical Targets 1 Scheme for Infrastructure MFP-40 Development C.Chain-75 Abattoirs- 14 2 Scheme for Technology Upgradation, 1000 Establishment and Modernization of FPIs ( 11th Plan committed liabilities) Achievements Reasons for Variations MFP-40 C. Chain-66 Abattoirs- 12 881 The Schemes operated by the Ministry of Food Processing Industries are project oriented and not state or community or area specific. The grant of financial assistance extended by the Ministry is based on viable proposals from the entrepreneurs / organizations as well as availability of funds. Hence shortfall in the achievement is due to non-receipt of viable proposals/non-availability of funds. 3 Scheme for Quality Assurance, Codex, Standards, Research & Development & Other Promotional Activities 4 Scheme for Human Resource Development ( 11th Plan committed liabilities) R&D-20 Lab-10 HACCP-5 R&D- 20 Lab- 8 HACCP-4 Infra.-5 EDP - 50 FPTC - 5 Infra. – 3 EDP – 10 FPTC – 1 5 Scheme for Strengthening of Institutions Institutional support to Admission of B.Tech.-174, M.Tech.-88 & Ph.D. -18 students by NIFTEM in NIFTEM, IICPT, IGPB, 2014-15. Reasons for not filling up 6 B.Tech., 2 M.Tech. and 2 Ph.D. seats is due NMPPB and SNAs. to non-availability of students from reserved categories. NIFTEM achieved 100% placement. Admission of B.Tech. -37, M.Tech.-18 & Ph.D.-4 students by IICPT in 2014-15 & passing out of B.Tech. – 30, M.Tech. – 19 and Ph.D. – 3. Reasons for not filling up of 3 B.Tech. seat is due to non-availability of ST students, 2 M. Tech seats could not be filled due to non-availability of 1 ST and 1 SC student. 1 Ph.D.seat could not be filled due to non-availability of OBC candidate. 6 National Mission Processing (NMFP) on Food Release of GOI share to 32 States / UTs GOI share was This is a Centrally Sponsored Scheme launched by Ministry during 2012-13. The released to 23 achievements of physical targets depend on the utilization of GOI share and also States / UTs corresponding State share by State / UT Governments. Since it is a new scheme, State / UT Governments are establishing new structure for implementation of NMFP. Further, due to reduction of BE from Rs. 180 crores to Rs. 125.32 crores at RE stage, funds could not be released to various State / UT Governments, which had submitted utilization certificates. Therefore, achievements are less than physical targets 14 SCHEME WISE PHYSICAL PERFORMANCE - 2013-14 Sl. No. Name of Schemes / Programmes Physical Performance Physical Targets 1 Scheme for Infrastructure Development Achievements MFP-40 C.Chain-75 Abattoirs- 10 2 Scheme for Technology Upgradation, 600 Establishment and Modernization of FPIs ( 11th Plan committed liabilities) MFP-40 C. Chain-66 Abattoirs- 17 996 3 Scheme for Quality Assurance, Codex, Standards, Research & Development & Other Promotional Activities 4 Scheme for Human Resource Development ( 11th Plan committed liabilities) R&D-15 Lab-9 HACCP-7 R&D- 38 Lab- 14 HACCP-5 Infra.-5 EDP-100 FPTC-10 Infra.-3 EDP-67 FPTC-3 5 Scheme for Strengthening of Institutions Reasons for Variations The Schemes operated by the Ministry of Food Processing Industries are project oriented and not state or community or area specific. The grant of financial assistance extended by the Ministry is based on viable proposals from the entrepreneurs / organizations. Hence shortfall in the achievement is due to nonreceipt of viable proposals. CCEA in its meeting held on 08.08.2013 has approved fourth phase of upscaling of the Cold Chain scheme for taking up 75 cold chain projects. Out of this 66 projects have already been sanctioned from the eligible proposals received against the EOI dated 07.05.2012. To fill up the tentatively 15 vacant slots, an EOI was floated on 02.12.2013. In response 153 were received which are under various stages of scrutiny. 17 abattoir projects were approved during 2013-14. Of the 10 abattoir projects approved during 11th Plan, 2 projects were completed upto 2013-14. The proposals of HRD are being processed out of the committed liabilities of the 11th plan period and no new proposals are received in Ministry during the 12th plan, as the scheme has been subsumed in the Centrally sponsored scheme of National Mission on Food Processing (NMFP). Institutional support to Admission of B.Tech.-174, M.Tech.-89 & Ph.D. -09 students by NIFTEM in NIFTEM, IICPT, IGPB, 2013-14. Reasons for not filling up 6 B.Tech. and 1 M.Tech. seats is due to nonNMPPB and SNAs. availability of SC/ST/OBC students. 1 Ph.D seat could not be filled up as the selected student did not join. Admission of B.Tech. -39, M.Tech.-20 & Ph.D.-4 students by IICPT in 2013-14. & passing out of first batch of B.Tech. students. Reasons for not filling up of 1 B.Tech. seat is due to non-availability of ST student. 1 Ph.D.seat could not be filled due to non-availability of suitable candidate. 6 National Mission Processing (NMFP) on Food Release of GOI share to 32 States / UTs GOI share was This is a Centrally Sponsored Scheme launched by Ministry during 2012-13. The released to 11 achievements of physical targets depend on the utilization of GOI share and also States / UTs corresponding State share by State / UT Governments. Since it is a new scheme, State / UT Governments are establishing new structure for implementation of NMFP. Therefore, achievements are less than physical targets 15 Scheme –wise details of performance Scheme for Infrastructure Development - In order to address the problems of infrastructural constraints in the food-processing sector, the Ministry of Food Processing Industries is implementing a Scheme for Infrastructure Development since 11th Plan. Total Plan outlay for the Scheme for Infrastructure Development during 2015-16 is Rs. 329.00 crore. The Scheme for Infrastructure Development includes the following 3 components: Mega Food Park - The Scheme of Mega Food Park envisages a well-defined agri/ horticultural-processing zone containing state-of-the art processing facilities with support infrastructure and well-established supply chain. The Govt. has approved setting up of 42 Mega food parks during the 11th and 12th Plan in 4 phases i.e. 10 in 1st phase, 5 in 2nd phase and 27 in 3rd phase and 4th phase put together. Out of the total 42 Mega Food Park projects sanctioned by the Govt., 40 projects for setting up of Mega Food parks have been approved by the Ministry. Out of these, 21 projects have been accorded final approval and 4 projects have been accorded in-principle approval and 15 projects have been cancelled /withdrawn. Out of 21 finally approved projects, 4 are partially operational and 4 projects are in advance stages of implementation, 2 of which are likely to be completed during 2014-15 and 2 in the year 2015-16. BE 2013-14 for the scheme was Rs. 116.00 crore which was reduced to Rs. 110.25 crore at RE stage. An amount of Rs. 94.11 crore was released during 2013-14. BE 2014-15 was Rs. 120.00 crore and at RE stage it was reduced to Rs. 63.94 crore. Against it, Ministry has released grant-in-aid of Rs. 52.83 crore till 31.12.2014. Cold Chain, Value Addition and Preservation Infrastructure - Ministry of Food Processing Industries (MFPI) launched a Plan Scheme during the 11th Plan to provide financial assistance to project proposals received from public /private organisations for integrated cold chain infrastructure development. The initiatives are aimed at filling the gaps in the supply chain, strengthening of cold chain infrastructure, establishing value addition with infrastructural facilities like sorting, grading, packaging and processing for horticulture including organic produce, marine, dairy, poultry etc. Ministry has accorded sanction to 112 cold chain projects so far. Out of these, 50 projects have become commercially operational, 28 projects have achieved 25% progress, 25 projects have achieved 75% progress and remaining projects are under various stages of implementation. Besides, upscaling of the scheme has been approved during the 12th plan by taking up 75 new cold chain projects as per financial assistance pattern of 11th plan. BE 2013-14 for the scheme was Rs. 100.00 crore which was raised to Rs. 103.75 crore at RE stage and an amount of Rs. 103.73 crore was released during 2013-14. BE 2014-15 was Rs. 160.00 crore and at RE stage it was reduced to Rs. 153.36 crore. Against it, Ministry has released grant-in-aid of Rs. 146.13 crore up to 31.12.2014. Setting up/Modernization of Abattoirs - A Plan Scheme for establishing new abattoirs and modernizing of existing abattoirs was started in the 11th Five Year Plan. The scheme is being implemented with the involvement of local bodies (Municipal Corporations and 16 Panchayats)/ Public Sector Undertaking/ Co-operatives/ Boards under Government and has flexibility for involvement of private investors on PPP basis. The Objectives of the scheme are: Scientific and hygienic slaughtering of the animals. Application of modern technology for slaughter waste management and pollution control. More humane treatment of animals/minimizing transportation of animals. Better by-product utilization/value addition. Providing chilling facility to prevent microbial activity in slaughtered animals. Better hygiene, safety and retail cold chain management. Better forward linkage facility for finished meat and meat products. Upscaling of the scheme has been approved to cover setting up of 25 new abattoirs and modernization of 25 existing abattoirs at a total project cost of Rs 330.84 crore, inclusive of committed liabilities in respect of on-going projects of 11th plan 29 abattoir projects have been accorded approval during 12th Plan as on 31.12.2014 and remaining proposals received up to 31.03.2014 are under consideration of the Ministry. BE 2013-14 was Rs. 31.00 crore. At RE 2013-14 stage it was reduced to Rs. 27.72 crore and against it an amount of Rs. 26.68 crore was released during 2013-14. BE 2014-15 was Rs. 35.00 crore and at RE stage it was reduced to Rs. 12.32 crore. Against it, Ministry has released grant-in-aid of Rs. 9.71 crore (up to 31.12.2014). Scheme for Technology Upgradation/ Establishment/Modernization of Food Processing Industries ( 11th Plan committed liabilities) - Ministry of Food Processing Industries (MFPI) has been implementing the Scheme of Technology Upgradation/ Establishment/Modernization of Food Processing Industries since 9th Plan onwards, which is aimed at creation of new processing capacity and up-gradation of existing processing capabilities for various sectors like Consumer, Bakery, Dairy, Fish, Wine & Beer, Fruits & Vegetables, Meat, Oil, Pulse, Rice and Flour Milling. The objectives of the scheme are to increase the level of processing, reduction of wastage, value addition, enhancing the income of farmers as well as increasing exports thereby resulting in overall economic development. Assistance in the form of grants-in-aid is extended under this Scheme for all segments of the food processing sector including fruits and vegetables, milk, fish, grain, meat, poultry etc. During the 12th Five Year Plan (2012-17) the Scheme of Technology Upgradation/ Establishment/ Modernization of Food Processing Industries has been subsumed in the National Mission on Food Processing (NMFP), which is being implemented through State/ UT Governments. Cases received up to 31.03.2012 only are being considered in the Ministry. The expenditure incurred and cases assisted sub sector-wise in 2013-14 and 2014-15 are given below:17 (Rs. . In Crore) Sector 2013-14 No. of cases 2014-15 (up to 31.12.2014) Amount No. of cases Amount 191 32.48 166 30.14 Dairy 84 15.58 77 14.45 Fisheries 25 5.78 22 5.14 Flour Milling 12 2.39 16 2.69 232 36.70 158 28.37 Meat & Poultry 22 4.89 19 4.38 Oil Milling 69 10.64 13 2.32 Pulse Milling 25 3.49 19 2.19 Rice Milling 327 48.44 320 42.33 9 1.69 71 10.62 996 162.08 881 142.63 Consumer Industries Fruits And Vegetables Processing Wine And Beer Total BE 2013-14 for the scheme was Rs. 160.00 crore. It was raised to Rs. 163.92 crore at RE 2013-14, against which an amount of Rs. 162.08 crore was released as grant-in-aid during 2013-14. BE 2014-15 was Rs. 160.00 crore and at RE stage it was reduced to Rs. 157.03 crore. Against it, Ministry has released grant-in-aid of Rs. 142.63 crore (up to 31.12.2014). Under BE 2015-16 a provision of Rs 100.00 crore has been allocated for the Scheme. Scheme for Quality Assurance, Codex Standards and Research and Development and Promotional Activities - The Scheme covers the following activities: (a) Quality / Safety Management System – HACCP/ISO 22000, 9000 / GHP /GMP - Ministry of Food Processing Industries is operating a Plan Scheme for adoption / implementation of food safety and quality assurance systems such as ISO 22000, ISO 9000, Hazard Analysis and Critical Control Points (HACCP), Good Manufacturing Practices (GMP), Good Hygienic Practices (GHP) etc by the food processing industries with the following objectives: To prepare the industry to face global competitions in international trade. To enable adherence to stringent quality and hygiene norms and thereby ensuring consumer safety. To enhance product acceptance by consumers. 18 To keep Indian industry technologically abreast of international best practices. During 2014-15(up to 31.12.2014), four food-processing units have been assisted towards achieving HACCP/ ISO 22000 certification. (b) Setting up/Up-gradation of Food Testing Laboratories - It is important that quality of the product is maintained at every level of production chain. One of the steps towards achieving this goal is strengthening / setting up/ networking of laboratories. To provide the common facilities to food processing industries, consumers and other stakeholders for testing articles of food, Ministry of Food Processing Industries is operating a Plan Scheme for setting up/up-gradation of quality control laboratories with following objectives: To analyse the samples received from processing industries and other stakeholders. To reduce the time for analysis of samples by reducing transportation time of samples. To ensure compliance with international and domestic standards on food. To establish a surveillance system for monitoring the quality and composition of food. During the financial year 2014-15 (up to 31.12.2014), the Ministry has assisted 8 new projects (including 7 through ICAR) for setting up/ up-gradation of food testing laboratories. (c) R&D Programmes for FPI - Assistance is provided to various Institutions/Universities/Organizations and recognised R&D laboratories both in public and private sectors, to promote and undertake demand driven R&D work in the field of food processing sector. The objective of the scheme is that end product/ outcome / findings of the R&D work should benefit food processing industries in terms of product and process development, improved packaging and value addition leading to innovative products and processes with commercial value. During the financial year 2014-15(up to 31.12.2014), the Ministry has assisted 20 new R&D projects {including 17 through Science Engineering Research Board (SERB) under DST}. (d) Other Promotional Activities - The promotional activities of the Ministry are aimed at development of the processed food sector by creating awareness through dissemination of information, familiarizing the existing and prospective entrepreneurs with modern technologies of production and packaging, development of markets and popularization of products as also attracting investments through seminars/workshops and Fairs/exhibitions as also by undertaking studies/surveys etc. for assessment of potential for food processing industries. During the year 2014-15, Ministry participated in 3 exhibitions (National) and 16 events (seminar/workshops) were assisted by the Ministry. Besides, the Ministry participated in 1 international event during 2014-15. 19 BE 2013-14 for the Scheme for Quality Assurance, Codex Standards and Research and Development and other Promotional Activities was Rs. 35.00 crore and at RE stage it was raised to Rs. 35.66 crore. An amount of Rs. 35.33 crore was released during 2013-14. BE 2014-15 was Rs. 36.00 crore and at RE stage it was raised to Rs. 41.28 crore. Against it, Ministry has released grant-in-aid of Rs. 28.56 crore (up to 31.12.2014). BE 2015-16 has been kept at Rs. 30.00 crore. Scheme for Human Resource & Skill Development (committed liabilities of 11th Plan) - The scheme of Human Resource & Skill Development aims at augmenting the supply of trained manpower/ personnel at all levels for food processing sector namely entrepreneurs, managers, sales persons, floor workers etc. The Scheme has been subsumed in the Centrally Sponsored Scheme of National Mission on Food Processing (NMFP) implemented by the States/ UTs during the 12th Plan. However, the projects received during the 11th Plan period (up to 31.03.2012) only are being considered in the Ministry. The scheme comprises of the following three components: Food Processing & Training Centers (FPTC) - Development of rural entrepreneurship and transfer of technology for processing of food products by utilizing locally grown raw material and providing “Hands-on” experience at such production cum training centers, while according priority to SC/ST/OBC and women. In order to develop skill and entrepreneurship particularly in fruit and vegetable processing in rural areas, the Ministry has provided assistance for setting up of 623 Food Processing Training Centre (FPTCs) since inception of the scheme and till 31.12.2014. An amount of Rs. 3.92 lakhs has been released as grants-in-aid to 1 center as fixed capital and Rs. 10.63 lakhs as seed capital to 6 FPTCs during 2014-15 (up to 31.12. 2014). Entrepreneurship Development Programme (EDP) - The Ministry is providing financial assistance to conduct EDPs in food processing through Central/ State Government Organizations, R&D Institutions, Universities, SNAs & NGOs. The objective of EDP is to enable trainees to establish commercially viable enterprises in food & agri processing sector by providing basic knowledge of project formulation and management including technology and marketing, motivating the trainees and instilling confidence in them, educating on the opportunities & financial assistance available and providing escort services to enable them to avail credit facilities from banks/ financial institutions and other support services from the developmental organizations. The duration of EDP is 6 weeks with a follow up phase of 12 months and with a minimum number of trainees being 25. Maximum financial assistance of Rs. 2.00 lakh per EDP is provided. An amount of Rs. 211.15 lakh has been released during 2013-14 as grants-in-aid to 67 EDPs and 2nd & 3rd installment to continuing EDPs and Rs. 77.65 lakh during 2014-15 (up to 31.12.2014) as grants-in-aid to 10 EDPs and 2nd & 3rd installment to continuing EDPs. Assistance for creation of infrastructure facilities for Degree/Diploma Courses in food processing sector - The Ministry is implementing a scheme for assistance to educational institutions like Central/ State Governments organizations, reputed Universities/ Colleges, Technical institutes for creation of infrastructure facilities. The objective of the Programme is to develop technologists, managers and entrepreneurs in food processing sector, to upgrade skills of existing personnel through training programmes and to develop manpower in quality management. The quantum of financial assistance given to educational institutions under this scheme is upto Rs. 75 lakhs in two equal installments for creation of infrastructure facilities like, equipments, laboratory pilot plants, library and 20 books and journals etc. for running degree/ diploma courses and training programmes in the food processing sector. An amount of Rs. 134.88 lakh has been released during 2013-14 as grants-in-aid to 3 new institutions and 2nd instalment to previously approved institutions and Rs. 209.62 lakhs during 2014-15 (up to 31.12.2014) as grants-in-aid to 3 new institutions and 2nd instalment to previously approved institutions. BE 2013-14 for the Scheme for Human Resource Development was Rs. 4.00 crore and at RE stage it was raised to Rs. 4.20crore. Against it, Rs. 3.78 crore was utilized as grant-in-aid during the year 2013-14. BE 2014-15 was Rs. 4.00 crore and at RE stage it was reduced to Rs. 3.75 crore. Against it, Rs. 2.27 crore was utilized as grant-in-aid during the year 2014-15(up to 31.12.2014). Under BE 2015-16 a provision of Rs 5.00 crore has been allocated for the Scheme. STRENGTHENING OF INSTITUTIONS AND ADMINISTRATION - This scheme focuses on putting in place new and strengthening of existing institutional mechanisms for human resource development in the food processing sector as well as towards undertaking developmental activities in areas such as grape processing, meat and poultry processing and covers the following components: Establishment of National Institute of Food Technology Entrepreneurship and Management (NIFTEM). Strengthening of Indian Institute of Crop Processing Technology (IICPT). Indian Grape Processing Board. National Meat and Poultry Processing Board (NMPPB). Details of the above Institutions are at Chapter VI. Centrally Sponsored Scheme (CSS) – National Mission on Food Processing - Ministry of Food Processing Industries (MFPI) had launched a Centrally Sponsored Scheme (CSS) - National Mission on Food Processing (NMFP) during 2012-13 for implementation through States / UTs. The basic objective of NMFP was decentralization of implementation of Ministry‟s schemes, with substantial participation of State/ UT Governments. The schemes implemented under NMFP up to 31.03.2015 are as under: (i) Scheme for Technology Up-gradation / Establishment / Modernisation of Food Processing Industries. (ii) Scheme for Cold Chain, Value Addition and Preservation Infrastructure for Non Horticultural Products. (iii) Scheme for setting up / modernisation / expansion of Abattoirs (implemented w.e.f 2014-15). (iv) Scheme for Human Resource Development (HRD): (a) Creation of Infrastructure facilities for running Degree / Diploma / Certificate Courses in Food Processing Technology. (b) Entrepreneurship Development Program (EDP). (c) Food Processing Training Centre (FPTC). (d) Training at recognized Institutes and sensitization cum awareness programme. (v) Scheme for Promotional Activities: 21 (a) Organizing Seminar/Workshops. (b) Conducting Studies/Surveys. (c) Support to Exhibitions/Fairs. (d) Advertisement & Publicity. (vi) Scheme for Creating Primary Processing Centers / Collection Centers in Rural Areas. (vii) Modernisation of Meat Shops. (viii) Reefer Vehicles. (ix) Old Food Parks Status of NMFP as on 31.12.2014: Sl. No. Particulars 1. Budget Estimates 2. Revised Estimates 3. Actual Expenditure 2012-13 250.00 185.32 182.90 2013-14 187.00 30.50 29.72 2014-15 180.00 125.32 108.00 (as on 31.12.2014) The National Mission on Food Processing stands discontinued as a Centrally Sponsored Scheme w.e.f. 2015-16. An allocation of Rs. 7.00 crore for NMFP (Union Territory Plan) has, however, been kept under BE 2015-16. Assistance for Projects in North-East As per Government policy, a minimum of 10% of the Annual Plan outlay is to be earmarked for utilization on projects in the North-Eastern States including Sikkim. Accordingly, the Ministry has been allocating Plan funds for projects in North- Eastern States. During the financial year 2015-16, a provision of Rs. 48.00 crore being 10% of Central Plan Outlay of Rs. 480.00 crore is earmarked for utilization on projects in the North-Eastern States including Sikkim. ……………………. 22 CHAPTER -V FINANCIAL REVIEW DURING 2012-13, 2013-14, 2014-15 & BE 2015-16 Scheme-wise trend of expenditure vis-à-vis Budget Estimate/Revised Estimate/ Actual Expenditure (Rs. in crore) S. No. Name of Scheme 2012-13 RE A. 1. (a) (b) PLAN Scheme for Infrastructure Development Mega Food Park Cold Chain 86.00 86.00 93.20 81.37 93.12 81.19 116.00 100.00 110.25 103.75 94.08 103.73 120.00 160.00 63.94 153.36 52.83 146.13 (c) Abattoir 19.00 9.62 9.58 31.00 27.72 26.68 35.00 12.32 9.71 191.00 100.00 184.19 186.46 183.89 186.19 247.00 160.00 241.72 163.92 224.49 162.08 315.00 160.00 229.62 157.03 208.67 142.63 329.00 100.00 35.00 31.91 31.34 35.00 35.66 35.33 36.00 41.28 28.56 30.00 4.00 4.00 3.98 4.00 4.20 3.78 4.00 3.75 2.27 5.00* 80.00 68.12 67.58 75.00 74.00 72.56 75.00 43.00 37.90 16.00 250.00 0.00 660.00 185.32 0.00 660.00 182.90 0.00 655.88 187.00 0.00 708.00 30.50 0.00 550.00 29.72 0.00 527.96 180.00 0.00 770.00 125.32 0.00 600.00 108.00 7.00@ -487.00 -- -- 4.17 -- -- 0.71 -- 660.00 660.00 651.71 708.00 550.00 527.25 770.00 600.00 516.10 487.00 10.54 10.16 9.57 11.11 14.32 13.98 15.86 17.74 10.82 18.51 -- -- -- -- -- 0.02 -- BE AE 2013-14 RE BE AE 2014-15 RE BE AE (up to 2015-16 BE 31.12.2014)^ 2. 3. 4. 5. 6. 7. Total Scheme for Technology Upgradation /Establishment/Modernization of Food Processing Industries Scheme for Quality Assurance, Codex Standards, R&D and Promotional Activities Scheme for Human Resource Development Scheme for Strengthening of Institutions National Mission on Food Processing Capital section Total - Plan Deduct Recoveries Net Total(Plan) - A Total-Non Plan Deduct Recoveries Net Total(Non-Plan) - B Grand Net Total {(A)Plan+(B)Non-Plan)} Lump sum provision for NER - 329.00# 528.03 11.93 -- 10.54 10.16 9.57 11.11 14.32 13.96 15.86 17.74 10.82 18.51 670.54 670.16 661.28 719.11 564.32 541.21 785.86 617.74 526.92 505.51 66.00 66.00 64.98 70.80 55.00 37.58 77.00 60.00 14.02 48.00 Expenditure incurred in respect of NE sector has been booked under corresponding functional head after budget re-appropriation. ^Expenditure figures up to 31.12.2014 are Provisional. # Nomenclature of the scheme from FY 2015-16 changed to Scheme for Infrastructure Development- Mega Food Park, Cold Chain & Abattoir. * Nomenclature of the scheme from FY 2015-16 changed to Scheme for Human Resource & Skill Development. @UT Plan only. 23 Object Head wise Trend of Expenditure 2012-13, 2013-14, 2014-15 & BE 2015-16 (Rs. in crore) Object head 1 6 11 12 13 20 26 28 31 35 36 50 31 31 58 1 3 6 11 12 13 16 20 28 31 32 36 42 A-Object Head (Plan) BE 2.85 0.10 0.40 0.75 1.10 1.25 5.63 7.70 477.16 41.00 0.60 40.40 15.06 66.00 660.00 2012-13 RE 2.85 0.10 0.40 0.75 1.10 1.26 2.81 4.14 386.43 41.00 0.60 145.06 7.50 66.00 660.00 660.00 AE 2.65 0.04 0.40 0.51 1.10 1.18 2.61 4.01 429.88 41.00 0.60 166.24 5.66 * 655.88 4.17 651.71 BE 3.00 0.15 0.60 0.90 1.35 1.85 3.13 9.20 402.84 45.98 8.00 0.80 150.40 9.00 70.80 708.00 708.00 2013-14 RE 3.00 0.15 0.75 0.75 1.35 1.83 1.45 6.82 403.50 39.98 9.00 0.80 25.06 0.56 55.00 550.00 550.00 AE 2.93 0.07 0.75 0.48 1.35 0.80 1.64 5.79 434.65 39.98 9.00 0.80 29.72 * 527.96 0.71 527.25 BE 3.30 0.15 1.00 0.60 1.35 0.75 1.50 6.51 469.37 36.20 9.25 0.90 157.06 5.06 77.00 770.00 770.00 2014-15 RE 3.30 0.15 1.00 0.60 1.35 0.50 1.30 6.23 390.88 14.20 9.25 0.90 109.62 0.72 60.00 600.00 -600.00 AE(P)* 2.23 0.07 0.36 0.18 0.82 0.47 0.53 4.08 389.08 14.20 7.60 0.41 107.84 0.16 * 528.03 11.93 516.10 Salaries Medical Treatment Domestic Travel Expenses (DTE) Foreign Travel Expenses (FTE) Office Expenses (OE) Other Administrative Expenses Advertising & Publicity Professional Services Grants-in-aid General Grant for creation of Capital Assets Grant -in -Aid -Salaries Other Charges Grants-in-aid to State Governments Grants-in-aid to Union Territories Provision for N.E. Sector Including Sikkim Total- (A) Plan Deduct Recoveries Net Total (Plan) 660.00 B-Object Head (Non-Plan) Salaries 6.08 6.70 6.61 7.68 8.02 7.97 9.01 8.58 6.87 Overtime Allowance (OTA) 0.07 0.03 0.03 0.03 0.04 0.04 0.06 0.04 0.02 Medical Treatment 0.14 0.03 0.04 0.05 0.02 0.01 0.07 0.10 0.05 Domestic Travel Expenses (DTE) 0.22 0.35 0.25 0.30 0.41 0.38 0.60 0.26 0.21 Foreign Travel Expenses (FTE) 0.45 0.20 0.16 0.20 0.05 0.04 0.10 0.10 -Office Expenses (OE) 3.06 2.41 2.11 2.43 2.40 2.20 2.54 3.03 1.91 Publications 0.10 0.13 0.07 0.05 0.04 0.04 0.06 0.10 0.06 Other Administrative Expenses 0.20 0.10 0.10 0.15 0.15 0.13 0.22 0.32 0.20 Professional Services 0.01 0.01 0.01 0.05 0.05 -Grants-in-aid General 2.01 Contribution 0.15 0.12 0.11 0.15 0.15 0.02 Grant -in -Aid -Salaries 3.00 3.00 3.00 3.00 1.50 Lump sum Provision 0.21 0.21 0.20 0.06 0.06 0.06 --Total- (B) Non- Plan 10.54 10.16 9.57 11.11 14.32 13.98 15.86 17.74 10.82 Deduct Recoveries 0.02 --Net Total (Non-Plan (B)) 10.54 10.16 9.57 11.11 14.32 13.96 15.86 17.74 10.82 Grand Net Total {(A)Plan+(B)Non-Plan)} 670.54 670.16 661.28 719.11 564.32 541.21 785.86 617.74 526.92 Expenditure incurred in respect of NE sector has been booked under corresponding functional head after budget re-appropriation. * Expenditure figures up to 31.12.2014 are Provisional. 24 2015-16 BE 2.50 0.08 0.30 0.05 1.00 0.80 1.05 5.75 409.30 10.00 0.50 0.67 0.00 7.00 48.00 487.00 -487.00 10.15 0.04 0.12 0.42 0.15 3.03 0.06 0.24 0.10 1.04 0.16 3.00 -18.51 -18.51 505.51 Outstanding Utilization Certificates Position of outstanding Utilization Certificates in respect of Grants-in-aid released up to 31.03.2013 and due as on 1.4.2014 is given below: No. of UCs pending Amount (Rs. in crore) 2842 556.36 Unspent balances with State Governments/UTs Unspent balances with State Governments/UTs as on 31.12.2014 are given below: (Rs. in crore) Sl. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. Total State Andhra Pradesh Bihar Chhattisgarh Goa Gujarat Haryana Himachal Pradesh Jammu and Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Orissa Punjab Rajasthan Tamil Nadu Telangana Uttar Pradesh Uttarakhand West Bengal Unspent balance as on 31.12.2014 0.00 2.50 2.85 1.75 3.29 0.07 0.00 2.55 0.28 4.52 0.36 0.57 0.00 1.77 1.26 0.77 1.81 0.11 1.28 0.29 1.21 27.24 25 North Eastern States Sl. No. 1. 2. 3. 4. 5. 6. 7. 8. Sl.No. 1. 2. 3. 4. 5. 6. 7. State Unspent balance as on 31.12.2014 Arunachal Pradesh Assam Manipur Meghalaya Mizoram Nagaland Sikkim Tripura Total 0.6600 2.3500 0.6900 0.8900 1.0700 0.0780 0.6228 0.6708 7.0316 UTs Unspent balance as on on 31.03.2014 on 31.12.2014 Andaman and Nicobar Islands Chandigarh Dadra and Nagar Haveli Daman and Diu Delhi Lakshadweep Pondicherry Total 0.540 0.000 0.000 0.000 2.040 1.687 0.650 4.917 …………………………………… 26 CHAPTER - VI REVIEW OF PERFORMANCE OF STATUTORY AND AUTONOMOUS BODIES I. Indian Institute of Crop Processing Technology (IICPT), Tamil Nadu The Indian Institute of Crop Processing Technology, formerly known as Paddy Processing Research Centre is located in Thanjavur, Tamil Nadu. It was subsequently upgraded to a National level institute and re-designated as IICPT. The Board of Governors is the apex body governing the activities of the Institute. The Secretary, Ministry of Food Processing Industries is the Chairman of the Board of Governors. The institute has six departments namely; 1. Academics & HRD Food Engineering & Design 2. Food Packaging Equipment & System Development 3. Food Product Development 4. Food Safety and Quality Testing 5. Primary Processing, Storage& Handling 6. Technology Dissemination Vision of the Institute To serve as a National Institution for research, education and training in the area of post harvest processing of crops of wetlands and storm prone regions To undertake basic, applied and adoptive research in post-production sector of cyclone / storm prone areas and wetlands, also including plantation, spices and other important crops To act as a National Organization for information of post-production systems of mandated crops To undertake transfer of technology, consultancy and analytical services for raw and processed agricultural commodities To establish linkages with related processing industries and other academic as well as R&D institutions for achieving its goals effectively Education - IICPT is running B.Tech., M.Tech. and Doctoral level courses in Food Processing Engineering from 2009-10 academic year and M. Tech (Food Science and Technology) from 2013-14 academic year. The Institute is affiliated to the Tamil Nadu Agricultural University. The annual intake of students is - B.Tech : 40 students - M.Tech. : 20 students - Ph.D : 05 students 27 IICPT has obtained approval of All India Council for Technical Education (AICTE) for its B.Tech. (Food Process Engineering) course. Three batches of M. Tech students and two batches of B. Tech students have already graduated from IICPT. All the graduates of IICPT have been placed for employment in reputed food processing companies, Government, or have obtained admissions in reputed Indian schools such as Institute of Management, Ahmedabad; MANAGE, Hyderabad; Tamil Nadu Agricultural University etc. Research - Currently, there are six externally funded projects and 19 internally funded projects in progress. The faculty members have published their research findings widely in reputed journals. As on 31.12.2014, 20 research papers in international journals and 18 research papers in national journals have been published. The faculty and students also presented 46 research papers in national seminars. Three of the faculty presented their research papers in international conference held at Chiang Mai, Thailand and one faculty at France during 2014-15. IICPT, Thanjavur has signed a MoU with Food Corporation of India (FCI) for conducting Trial Milling study of paddy in 11 States of India. Technologies Developed - IICPT has developed a wide range of technologies for the benefit of the food industry stakeholders. Some of the innovations are: High Moisture Paddy Preservation, Integrated Management of storage pests, Multipurpose Yard Drying Implement, Low Friction Huller, Idly Dry Mix, Continuous Rice Puffing Machine, Bio-fertilizer from Rice husk Ash, Effluent Treatment Plant, Vegetable Washer, Pneumatic Grain Pump, Fruit and Vegetable Grader, Hand Operated Amla Deseeding Unit, Banana De-hander, Banana Hand Cutter, Banana Washing cum Waxing Unit, Makhana Processing Unit, Coconut Dewatering Unit, Protein Isolate from Rice Bran, Pulse based Pro-biotic Foods, RTE Extruded products from milling byproducts, Mobile Processing Unit and Mobile Food Testing Laboratory. Short term Training Programmes - IICPT organized training programs for various stakeholders in the food processing sector. The Food Processing Business Incubation Centre of the institute offers periodical trainings for farmers, SHGs and aspiring youth on food processing basics and entrepreneurship development. The Food Safety and Quality Testing Department offers high-tech instrumentation training for students and researchers. Following are the training conducted during 2014-15(as on 31.12.2014): Training Programme One day skill development program Two days and up to one week skill development program More than one week skill development program Total 28 No. of Beneficiaries 1387 1970 95 3452 Collaborations - IICPT has collaboration with reputed organizations across the country and overseas. It has signed Memorandum of Understanding with 14 International and 28 National institutions/universities. These MoUs were signed for the purpose of developing mutually beneficial academic programs, exchange of academic staff for purposes of teaching and research, joint research, lectures and training and exchange of students for study and research. The Ministry has provided technical assistance for establishment of a Farmer Producer Company (FPC) in Thanjavur district comprising 1000 registered progressive farmers with the objective of backward integration and enhancement of profitability to farmers through a more effective supply chain. Budget - Outlay for IICPT for the year 2014-15 was Rs. 7.46 crore under Plan & Rs. 3.00 crore under Non-Plan and an amount of Rs. 5.70 crore has been released to IICPT up to 31.12.2014. The BE for 2015-16 is Rs. 4.04 crore under Non-Plan. No funds under Plan have been provided for BE 2015-16. II. National Institute of Food Technology Entrepreneurship & Management (NIFTEM) National Institute of Food Technology Entrepreneurship & Management (NIFTEM) has been set up at Kundli, Sonepat, Haryana at an estimated cost of Rs. 479.94 Crore. NIFTEM was registered as a Society under the Societies Registration Act, 1860 on 19.05.2010 and was granted the status of a Deemed to be University under de novo category by Ministry of HRD on 08.05.2012. Vision of the Institute To work as a Sector Promotion Organization of the food processing sector with following major objectives: Working as a “One Stop Solution provider” to all the problem of the sector. Working for “Skill Development & Entrepreneurship Development” for the sector. Facilitating business incubation services with its ultra-modern pilot plant for processing of vegetables, dairy, meat and grain processing. Conducting frontier area research for development of the sector. Developing world class managerial talent with advances knowhow in food science and technology. Providing intellectual backing for regulation which govern food safety and quality and at the same time foster innovation. Functioning as a knowledge repository on various aspects of food processing such as product information, production and processing technology, market trends, safety and quality standards, management practices among others. Working for up gradation of SME food processing clusters. Promoting Cooperation and networking among existing institutions within India and as well as with international bodies. 29 Academic Programme - The Institute started its first academic session from 16.08.2012 with B.Tech. (Food Technology & Management) and 5 streams of M. Tech.viz. Food Supply Chain Management, Food Safety and Quality Management, Food Process Engineering and Management, Food Plant Operations Management, Food Technology and Management. The Ph.D. programme commenced in all the 5 Post Graduate Streams from the academic year 2013-14. The annual intake of students is: B. Tech: 180 M.Tech: 90 Ph. D.: 20 The University has been granted approval of AICTE to conduct B.Tech. (Food Technology and Management) and five courses of M.Tech. Research - NIFTEM has set up a Research Cell to initiate and monitor research activities in the relevant areas of Food Technology Entrepreneurship and Management. It was decided to provide internal funding to research projects so that in house faculty members could start research projects immediately. Seventeen internally funded research projects have been approved for research by faculty members. The institute has also been awarded research projects by external agencies as under: A research project from Indian Council of Medical Research in collaboration with National Dairy Development Institute (NDRI), Karnal has been started at a cost of Rs. 31 lakh. National Horticulture Mission (NHM) funded project for Rs. 1.51 crore has been sanctioned. National Horticulture Board (NHB) project for Rs. 3.25 crore has also been sanctioned. One project has been sanctioned by Department of Science & Technology (DST) under MoFPI‟s R & D Scheme. The Institute has set up NIFTEM Research Development Council consisting of representatives of industry, academia & research institutions to chalk out the research agenda of institute. Short Term Training Programmes - In order to accomplish its mandate as Sector Promotion Organization of the Food Processing sector NIFTEM has set up three divisions, namely, Consultancy Division, SME Up- gradation Division and Skill Development Division. The Institute as part of its skill development initiatives has conducted 32 Short Term Training Programmes at its Campus from July, 2011 to September, 2014, in association with knowledge partners to enhance the overall skill level and employability of the work force. So far 653 participants from the industry have been trained. In addition to above, 24 skill development training programmes of 1 week and 2 weeks have been conducted on PAN India basis and trained 1032 participants comprising farmers and budding entrepreneuRs. To sensitize the prospective entrepreneurs, eight (8) one day outreach programmes have been conducted till December, 2014 and 3308 participants have been benefited. 30 Village Adoption Programme - NIFTEM has conceptualized a unique programme of village adoption by its students with a view to sensitize them of the problems and practices of farmers at grass root level. Seven rounds of Village Adoption Programme have been completed by NIFTEM students covering 39 villages in 19 States. Collaborations - NIFTEM has entered into Memorandum of Understanding (MoUs) with 5 international institutions viz. Wagenigen University, the Netherlands; Kansas State University, Manhattan, USA; University of Nebraska-Lincoln, USA; University of Saskatchewan, Canada and Institute for Food Safety and Health, Illinois Institute of Technology, Chicago for mutual co-operation in the field of faculty/ students exchange programme, research and other subjects of common interest. NIFTEM has also signed MoUs with 9 national institutions viz. IARI, Delhi; NDRI, Karnal; GSI India, New Delhi; CFTRI, Mysore; NITIE, Mumbai; DFRI, Mysore; IIT, Delhi; IIM, Lucknow and Aachi Masala Food Pvt. Ltd., Chennai, Tamilnadu). Student Innovation Fund - NIFTEM has created Student Innovation Fund for its students to encourage research and promote innovation driven learning. Financial assistance is extended for projects undertaken by students. International Grain Research Centre - The institute has set up an International Grain Research Centre to enhance market promotion, consumption and utilization of Indian cereal grains and their value added products. The centre has organized two training programmes during 2013-14. International Bakery Research & Training Centre - The institute has set up an International Bakery Research & Training Centre to facilitate in house and externally supported continuous experiential learning. The centre has organized three training programmes during 2013-14. Budget – Outlay for NIFTEM for the year 2014-15 was Rs. 49.92 crore. Out of a total approved outlay of Rs. 479.94 crore for NIFTEM an amount of Rs. 453.09 crore has been released to the Institute as on 31.12.2014.A provision of Rs. 10.00 crore has been kept for NIFTEM towards capital expenditure under BE 2015-16. III - National Meat & Poultry Processing Board (NMPPB) The National Meat & Poultry Processing Board was constituted on 27th February, 2009 and registered on 26th March, 2009 under Societies Registration Act, 1860. The main objectives of the Board were as follows: To foster the sustainable development of the Meat and Poultry Processing sector. 31 Helping the industry in setting up / modernization of abattoirs by providing technical consultancy for production of hygienic meat and meat products and for utilization of slaughterhouse wastes to prepare animal by-products with value addition. Training of meat producers and entrepreneurs to adopt Good Manufacturing Practices (GMP), Hazard Analysis & Critical Control Points (HACCP) and ISO 22000 in meat production. To undertake market surveys and studies and help the industry to create market intelligence, data base and its dissemination on regular basis for improvement of the meat sector. Outreach Training Programme / Seminars: NMPPB has organized one outreach training programme for meat/poultry sector workers and butchers, sensitizing them about cleanliness and hygiene in slaughter practices during 2014-15 at Chitradurga, Kartanaka on 02.07.2014. The Board which was to be an industry driven body, with provision of funding by the Government for first three years i.e. up to 2012-13, had to generate its own revenue. However, the Board was unable to generate revenue for its sustainability and was not in a position to continue its activities without Government funding. The continuation of the Board during the remaining period of 12th Five Year Plan was considered by the Ministry. Based on the comments received from Department of Expenditure, Ministry of Finance and the Planning Commission and consultation with the Stakeholders, it has been decided to wind up the Board. Accordingly, NMPPB is presently in the process of being wound up. IV Indian Grape Processing Board (IGPB) The Indian Grape Processing Board has been set up under the Ministry of Food Processing Industries. The Board‟s headquarter is located in Pune, Maharashtra. The website of IGPB is www.igpb.in. The main objectives of the Indian Grape Processing Board includes focus on research & development, extension, quality up-gradation, market research and information, domestic and international promotion of Indian Wine: to set up facilities for wine analysis, testing for „quality‟ defining and label standards, certification of wine and promoting Good manufacturing Practices (GMP), Hazard Analysis and Critical Control Point (HACCP)/ISO 22000; to promote cooperative efforts, backward and forward linkages between growers and wine industry in general, to formulate a vision, action plan for the growth of Indian wine sector including research and development for quality up-gradation in new technologies/processes and to foster sustainable development of Indian wine industry. 32 Expected Outcomes - The expected outcomes of Indian Grape Processing Board would be as follows: Increased awareness and capacity building among farmers, processors and other stakeholders resulting in increased productivity, reduced wastage and improved quality of grapes and wine conforming to global standards. Satisfy growing demand of domestic markets and exports. Increase in farmers‟ income and employment generation with a particular focus on rural areas. Encouragement to cluster farming, contract farming and farm diversification. Benefits of value addition brought to farming community and farmers fetching remunerative prices for their produce. The Board has 16 members including the Chairman who is an eminent professional from the wine industry. Continuation of the Board during the 12th Plan is under consideration. ………………………………………….. 33 TABLE OF ABBREVIATIONS AE Actual Expenditure IQF Individually Quick Frozen AICTE All India Council for Technical Education ISO International Standards Organization BE Budget Estimates LLPD Lakh Litres Per Day CA Controlled Atmosphere MA Modified Atmosphere CCEA Cabinet Committee on Economic Affairs MFP Mega Food Park CSS Centrally Sponsored Scheme MFPI Ministry of Food Processing Industries DARE Department of Agricultural Research and Education MT Metric Tonne DST Department of Science & Technology NER North-Eastern Region EDP Entrepreneurship Development Programme NIFTEM National Institute of Food Technology, Entrepreneurship & Management FPTC Food Processing Training Centres NMFP National Mission on Food Processing FTL Food Testing Laboratory NMPPB National Meat & Poultry Processing Board GHP Good Hygienic Practices PAC Proposal Approval Committee GMP Good Manufacturing Practices R&D Research & Development HACCP Hazard Analysis & Critical Control Points RE Revised Estimates HRD Human Resource Development RTE Ready To Eat IAFS Indo African Summit SERB Science & Engineering Research Board ICAR Indian Council of Agricultural Research SME Small & Medium Enterprises IGPB Indian Grape Processing Board SNA State Nodal Agency IICPT Indian Institute of Crop Processing Technology TSC Technical Scrutiny Committee 34
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